) is slated to report third-quarter fiscal 2013 results on Dec 4,
2013. In the previous quarter, it posted a negative surprise of
41.7%. Let's see how things are shaping up for this announcement.
AEROPOSTALE INC (ARO): Free Stock Analysis
COSTCO WHOLE CP (COST): Free Stock Analysis
FIVE BELOW INC (FIVE): Free Stock Analysis
KROGER CO (KR): Free Stock Analysis Report
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Factors in the Past Quarter
Aeropostale's dismal second-quarter fiscal 2013 results were
mainly due to weak traffic and higher promotional expenses.
Additionally, macroeconomic headwinds and increased inventory
levels were a drag on the company's top-line growth.
Our proven model does not conclusively show that Aeropostale is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Negative Zacks ESP:
ESP for Aeropostale is -8.00%. This is because the Most Accurate
Estimate stands at a loss of 27 cents and the Zacks Consensus
Estimate stands at a loss of 25 cents.
Zacks Rank #5 (Strong Sell):
Aeropostale's Zacks Rank #5 (Strong Sell) and a negative ESP make
surprise prediction difficult. We caution against stocks with
Zacks Rank #4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat:
Five Below, Inc.
) with Earnings ESP of +25.0% and Zacks Rank #2 (Buy)
The Kroger Co.
) with Earnings ESP of +1.89% and Zacks Rank #2 (Buy)
Costco Wholesale Corporation
) with Earnings ESP of +0.97% and Zacks Rank #3 (Hold)